Sri Lanka Fortress Resorts profits sharply up

Nov 20, 2012 (LBO) - Fortress Resort and Spa, a hotel in Koggala in Sri Lanka's southern coast said profit rose sharply to 35 million rupees in the six months to September 2012 recovering from a loss a year earlier.

 The firm reported earnings of 32 cents for the half year.

Sri Lanka's rupee weakened in 2012 and tourist arrivals have also been strong, though some 5-star resorts are saying that occupancy is not high.

The hotel is positioning itself in the premium market becoming a member of the 'Small Luxury Hotels' network.

The hotel said revenues rose 29 percent to 210 million rupees in the half year and cost of sales rose at a slower 7 percent to 54.7 million rupees allowing gross profits to grow 39 percent to 155 million rupees.

Administration costs rose 21 percent to 109 million rupees. Finance costs at 25 million rupees were flat, and there was 4.3 million rupees of finance income.

The cashflow statements showed a 6.2 million gain on asset disposals and 4.2 million rupee exchange gains.

source - www.lbo.lk